PETROFINA $850 MILLION COMMERCIAL PAPER RATED 'F-1' BY FITCH
-- FITCH FINANCIAL WIRE --
NEW YORK, Sept. 17 /PRNewswire/ -- Petrofina Delaware Inc.'s (PDI) U.S. commercial paper is rated 'F-1' by Fitch, as is the Euro commercial paper issued by Petrofina International Group and PDI. Petrofina S.A., the parent company of the Petrofina Group, unconditionally and irrevocably guarantees the due and punctual payment of these commercial paper notes. Approximately $550 million of U.S. commercial paper and $300 million of Euro commercial paper are currently outstanding.
With its concentrated and well integrated petroleum and chemicals operations, the group's operating and financial performance compares favorably with its peer group of major integrated companies. Petrofina continues to renew its hydrocarbon reserve base, maintaining a favorable production profile with reserve lives exceeding ten years. Refining, marketing, and petrochemical operations are tightly integrated, highly efficient, and well focused as to products and markets.
Group capital expenditures have declined from the record 1990 level, reflecting completion of major projects and greater investment selectivity. Going forward, the largest single project is the three-year upgrading of its key refinery in Antwerp, Belgium. Despite these disciplines, the recent decline in cash flow has meant an increase in external financing. Debt leverage is thus expected to increase from its year-end 1991 level of 41 percent, but then to ease with anticipated successive recoveries in each business sector, combined with expected continued controls on capital expenditures. Even at a cyclical low point, cash flow protection remains satisfactory and should improve from 1992 levels over the near term.
Petrofina S.A. is Belgium's largest industrial enterprise. The group encompasses companies operating in 33 countries, engaging in petroleum exploration and production, petroleum refining, marketing and transportation, and the production and marketing of petrochemicals and paints. PDI, based in Dallas, is 100 percent-owned by Petrofina S.A. In turn, PDI owns approximately 86 percent of the total voting stock of Fina, Inc.
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/CONTACT: Mary Anne Sudol of Fitch, 212-908-0562/ CO: Petrofina Delaware Inc. ST: Texas IN: OIL SU: RTG

SM -- NY067 -- 0702 09/17/92 13:32 EDT

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